According to the WARN Act, an employer with 200 employees is required to provide 60 days' notice of a mass layoff when which of the following is true?
- A flood requires that one of the plants be shut down for repairs, and 55 employees are laid off.
- The employer lays off 5 employees a week for 3 months.
- A major client unexpectedly selects a new vendor for the company's products, and the company lays off 75 employees.
- The employer is seeking additional funding and will lay off 70 employees if the funding falls through.
Answer(s): B
Explanation:
Answer option B is correct. The WARN Act requires employers to provide 60 days' notice when 500 employees or 33 percent of the workforce are laid off, and it requires the number to be counted over a period of 90 days. Five employees a week for 3 months is a total of 65 employees (5 employees times 13 weeks), which is 33 percent of the workforce. The three exceptions are the "faltering company exception" (D) when knowledge of a layoff will negatively impact the company's ability to obtain additional funding, the "unforeseeable business circumstance" (C) when unexpected circumstances occur, and the "natural disaster" (A) exception. See Chapter for more information.
Chapter: Workforce Planning and Employment
Objective: Organization Exit/Off-Boarding Processes
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